Artificial intelligence (AI) has been taking the world by storm over the past few months, with everyone talking about the diverse ways it can be used and what it means for businesses and customers alike.
However you feel about it, artificial intelligence is everywhere, so we wanted to look at what AI could mean for customer retention with the CEO of White Label Loyalty who shared some of his insights with us.
Can AI Be Used to Increase Customer Loyalty?
The question that we need to answer before we start talking about anything else is: how can AI improve customer loyalty?
One of the main benefits of using AI in a loyalty program is the ability to analyse customer data and behaviour patterns to offer more tailored rewards and promotions, personalising the experience for each user.
AI can also automate repetitive tasks, such as sending targeted offers, processing rewards, or updating users' profiles.
Automating routine tasks and improving the targeting of loyalty program offers means AI can help reduce operational costs.
Among the many AI applications, predictive AI and generative AI are the two that relate the most to applications within loyalty programs.
The purpose of predictive AI is to analyse data and predict future events or outcomes using machine learning algorithms. Generative AI, on the other hand, can produce new content by relying on existing data patterns.
How Can Predictive AI Analyze Loyalty Program Data?
Predictive AI presents a unique opportunity to analyze vast amounts of data generated by loyalty programs. By leveraging machine learning algorithms, AI can uncover valuable insights about customer preferences, behaviours, and purchasing patterns.
This analysis enables businesses to personalize rewards, incentives, and recommendations, creating a deeper connection with each customer and strengthening loyalty.
White Label Loyalty's AI module, for example, does exactly this: it lets you use the power of AI modelling to find business insights in your data, comparing different combinations of data points and then finding the factors that are driving results.
"This kind of predictive-AI-based module means you can personalise the incentives you offer based on customers' actions," Traore notes. "It also means you can predict churn, and fix the pain points your users are experiencing."
How Can Generative AI Affect Customer Retention?
Generative AI models that produce original content use neural networks and other deep learning algorithms to identify patterns and structures within existing data.
Personalisation
Generative AI could take personalisation in loyalty programs to the next level.
By combining data from various sources, generative AI algorithms can enhance platforms and digital product offerings, tailoring them to each customer's interests.
This level of personalisation makes customers feel valued and understood, resulting in increased satisfaction and stronger loyalty.
Expedia, for example, has recently committed to deploying AI to enhance the customer experience, launching a plug-in for ChatGPT.
The new plug-in should allow users to start open-ended conversations within the app to get activity, travel, hotel stay, transportation rental, and other recommendations for their trips, such as savings on every aspect of the travel experience.
This functionality allows users to start travel-related questions directly on the app, encouraging consumers to book more parts of their trip through one single website.
Intelligent Customer Experience
AI-powered chatbots and virtual assistants enable businesses to engage customers intelligently across multiple channels. These advanced systems can provide round-the-clock support, resolve queries, and offer personalised recommendations, ensuring a seamless customer experience.
OptoBiz.ai, for example, a software service now available on messaging platforms beginning with WhatsApp Business, is an AI-based virtual assistant designed to converse, assist, support, and provide information to users over various communication networks. Its capabilities extend to tasks like scheduling appointments, making reservations, answering customer queries, and providing personalized recommendations.
Natural language processing allows chatbots to provide faster and more helpful support by understanding customer queries and providing relevant information promptly.
AI chatbots can also be used to create and facilitate mini-games or quizzes that can overall improve engagement and satisfaction through interactive gamification, motivating customers to engage and participate more.
Final thoughts
As the loyalty landscape continues to evolve, businesses that embrace the power of AI in their loyalty programs gain a competitive edge.
AI technologies such as personalised recommendations, predictive analytics, enhanced product & support capability, and gamification enable businesses to deepen customer relationships and foster brand loyalty.
In conclusion, incorporating artificial intelligence offers businesses a win-win situation. From improving customer satisfaction to growing profits, we can expect more and more innovative loyalty program strategies to emerge.
